KYMR Collaborates With GILD; Stock Down on Sanofi Deal Update

Core Insights - Kymera Therapeutics, Inc. (KYMR) faced a setback as partner Sanofi (SNY) decided not to advance the development of lead IRAK4 degrader KT-474, but this was somewhat mitigated by an exclusive option and license agreement with Gilead Sciences, Inc. (GILD) [1][8] - Kymera also announced a public offering of $250 million of its common stock to fund clinical programs and general corporate purposes [1][14] Group 1: Sanofi Partnership Update - Sanofi has chosen to advance KT-485/SAR447971, a new oral candidate targeting IRAK4 for immuno-inflammatory diseases, into clinical studies, while discontinuing KT-474, which was in phase IIb studies for hidradenitis suppurativa and atopic dermatitis [5][6] - Kymera achieved a $20 million milestone in Q2 2025 related to preclinical activities associated with KT-485 [7] - The decision to advance KT-485 delays potential milestone payments for Kymera that could have been realized with KT-474's approval [15] Group 2: Collaboration with Gilead - Kymera entered into an exclusive option and license agreement with Gilead for a novel molecular glue degrader (MGD) program targeting CDK2, with potential applications in oncology [10] - The agreement includes an upfront payment of $85 million and potential milestone payments up to $750 million [11] - Kymera may also receive tiered royalties ranging from high single-digit to mid-teens on net product sales, while leading all research activities for the CDK2 program [12] Group 3: Financial Developments - Kymera's stock decreased by 1.4% on June 25 and dropped 6.91% in after-market trading, likely due to the Sanofi setback and equity dilution from the stock offering [2] - Year-to-date, KYMR shares have gained 15.5%, contrasting with a 2% decline in the industry [4] - The proceeds from the $250 million stock offering will be used to advance preclinical and clinical degrader programs and for general corporate purposes [14]